Apple to launch Apple Upgrade leasing program backed by Klarna on July 28

Tobi Opeyemi Amure Wed, July 22, 2026 at 11:17 AM PDT 6 min read

• AAPL

There is a real difference between paying for something and paying to use it. Most people do not notice which one they agreed to until the final payment clears.

For roughly a decade, financing an expensive phone in the United States worked one way. You committed to a monthly number, you made the payments, and at the end the hardware belonged to you.

Apple (AAPL) built its own program around that promise: 24 months at zero percent interest, AppleCare+ folded into the payment, an upgrade available after 12 payments, and ownership at the end, according to Apple.

Car buyers know the alternative. A lease lowers the monthly number and hands you nothing at the finish line except the paperwork for your next one.

That structure is now arriving in consumer electronics, and the timing is not an accident. Component costs have pushed Apple hardware prices up faster than most household budgets have moved this year.

The company is preparing to replace its financing lineup with a leasing program called Apple Upgrade, backed by Klarna (KLAR), reported TechCrunch.

Apple reportedly replaces iPhone financing with a Klarna-backed lease on July 28. — Shahid Jamil / Getty Images

Why Apple Needs a New Way to Sell Its Hardware

Apple spent the first half of 2026 raising prices, and it has been unusually blunt about the reason.

The company lifted prices across all Macs, iPads, home devices and the Vision Pro on June 25, reported CNN and TheStreet.

Memory and storage chips that go into laptops now compete for supply with data centers willing to pay far more for the same parts.

Apple said it had "never seen a component price increase this much, this quickly," according to CNBC and TheStreet.

That is the backdrop for a leasing pitch. A lower monthly payment is easier to sell than a higher sticker price, and it moves the conversation away from the number on the shelf tag.

Here is the run-up that made cheaper monthly math look appealing:

• The June 25 sweep had no equivalent in Apple's modern history, and the 13-inch MacBook Air moved to $1,299 from $1,099, reported Bloomberg.
• Apple shares closed more than 6% lower that session, the worst drop since April 2025, according to CNBC.
• IDC analyst Nabila Popal said "the days of $50 price increases are over," reported PBS News.
• The iPhone 16, entry-level iPad, Apple Watch SE and MacBook Neo are excluded from the new program, reported Macworld.

Every one of those excluded devices is the cheapest option in its category.

What struck me when I lined up the exclusion list against the price increases is that the program is not built for the budget shopper. It is built to keep buyers one tier above.

Story Continues

Related: Apple's iPhone cost problem reveals AI's hidden bill

What the Apple Upgrade Leasing Program Actually Does

Apple Upgrade is scheduled to arrive July 28 in the United States, at retail stores and online, reported TechCrunch. Enrollment requires only a soft credit check.

• Terms run 24 months for iPhone and Apple Watch, and 36 months for Mac and iPad.
• At the end, a customer can return the device, pay off the remaining value to keep it, or upgrade early.
• Some of those choices carry extra fees.

Apple will stop new enrollments in the iPhone Upgrade Program and its standard financing options as the new service rolls out, reported 9to5Mac.

More Apple News:

• Apple's iPhone 18 AI bet hides a pricing trap
• Apple just raised its service prices without telling anyone